Here are the key factors to keep in mind today for US Dollar trades:
- US CPI: Forex traders will get a very important fundamental report today with the release of the CPI report for May. Economists expect that the US will exit its deflationary reading from the previous month. The CPI is called higher by 0.5% for May monthly and 0.1% annualized. Forex traders can compare this with the 0.1% increase reported in April monthly and the 0.2% contraction annualized. The core CPI, which is the CPI excluding the volatile food and energy sector, is expected to show an increase of 0.2% in May monthly and 1.8% annualized. This can be compared to the 0.3% monthly increase reported in April and the 1.8% annualized increase.
- US Initial Jobless Claims and Continuing Claims: A lot of forex traders follow the weekly claims data in order to get a better idea about the developments on the labor market and the potential NFP report at the beginning of each month. Initial jobless claims are expected decrease to 275,000 while continuing claims are expected to decrease to 2,200,000.
- US Current Account Deficit: The US is expected to continue to its big debt load with a current account deficit of $117.1 billion in the first-quarter. This can be compared to the previous current account deficit of $113.5 billion.
- US Leading Indicators: Expectations call for an increase of 0.4% in May. This would represent a slowdown from the 0.7% increase reported in April.
- US Philadelphia Fed Index: The Philly Fed Index is expected to show a slight increase in activity and rise to 8.0 in June. Forex traders can compare this to the 6.7 which was reported in May.
Here are the key factors to keep in mind today for Swiss Franc trades:
- Swiss Trade Surplus: Switzerland managed to increase its trade surplus to CHF3.43 billion in May. Economists expected a trade surplus of CHF2.86 billion which forex traders can compare to the CHF2.66 billion trade surplus reported in April.
- SNB Rate Decision: The SNB kept interest rates on hold at -0.75% and also maintained its 3-month LIBOR range between -0.25% and -1.25%. This was widely expected by the forex market.
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